A recent NBC News report details how the government's loan modification program has actually made things worse for people battling foreclosure in Miami and elsewhere.
These government-backed programs have done little to help struggling homeowners. You can't rely on the government and you certainly can't bank on the banks trying to help you if you are struggling with foreclosure in South Florida or anywhere else. The best solution is seeking an experienced Miami Foreclosure Defense Attorney who can help you strike back at the banks in court, where the law is on the side of the homeowners.
The report highlights the situation of a couple from Vermont, who fell behind by one mortgage payment in 2009. They took part in the government's Making Home Affordable loan modification program after encouragement by their bank.
They received a trial modification, which reduced their payments by $600 per month. After communicating with their bank, asking if they had gotten a permanent modification, the bank's officials just told them to keep making their reduced payments.
But after a few months, they received shocking news -- letters from their bank telling them they were in foreclosure and using the difference of the reduced payments against them. Bank officials told them they had to come up with the difference from several months, plus late fees totally $13,000 or risk losing their house. Bank officials told them the couple hadn't sent in the proper documentation and therefore they were being denied for a permanent modification.
The NBC report found that the loan modification program is a trap because after reducing payments, the bank can deny the permanent modification, demand back payments and send a homeowner into foreclosure in the end.
Out of 1.6 million people who have gotten temporary modifications, only 600,000 received permanent modifications. But the Obama administration counts both groups as being helped by the program. About 15 percent, as of 2010, still ended up in foreclosure.
The banks are great deceivers. They are skilled at trying to get the most they can out of homeowners instead of helping them save their homes. It's obvious that for banks, they are far more concerned with the bottom line than with the homeowners.
Sadly, Miami Foreclosure Lawyers have seen more and more desperate homeowners sucked into loan modification scams, poorly run government programs and false promises from the banks themselves. People want to save their homes, but without the ability to print money or produce the collateral to take out lavish loans, they can feel hopeless. Sometimes too-good-to-be-true programs come along and people jump at the chance to save their home, which ends up costing them more in the long run. As the couple in the news report experienced, their bank simply wanted to squeeze as much money from them as possible and use pressure from a potential foreclosure as the way to do it.
But an experienced and aggressive Miami Foreclosure Defense Attorney can use the law and the skills obtained over time to help people stay in their homes and avoid foreclosure. Banks have dirty little secrets and exposing them can help homeowners keep their houses.
If you're battling foreclosure in Miami or the surrounding areas, contact Jacobs Keeley for a confidential appointment to discuss your rights. Call (305) 358-7991.
More Blog Entries:
Mortgage Modification Fraud Reports in Miami Tops in Nation: June 11, 2011
More Headaches For Those Seeking Mortgage Modification in Miami: April 21, 2011